Abstract
Currency devaluation and fuel subsidy removal are policies that are phenomena to the Nigerian economic environment. The implementation of the policies has further caused more challenges in the pursuit for economic development than remedy to alleviate the crisis in the Nigeria economy. However, the continuous exploration of this policies by successive administration was a concern to this research work. It is as a result of this persistent policies that this paper wants to analyse its viability for economic development in Nigeria.The paper adopted survey research design with the use of questionnaire administered to 387 respondents. Three major organizations were purposefully selected as sources for data collection which were the Central Bank of Nigeria (CBN), National Petroleum Corporation (NNPC) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).The paper found out that currency devaluation and fuel subsidy removal is a resultant effect of the mono-productive characteristics of the Nigerian economy which has continually led to balance of payment deficit, low competitiveness in the economy and fall short in living quality of the citizenry. Further exposition revealed that not until diversification of the economy is attained, revitalization of the power sector and industrialization for local manufacturing; economic development might not be feasible. Therefore, it is recommended that industrialization of the economy is highly overdue, infrastructural development imperative and economic policies such as devaluation and subsidy regime should be mildly used when economic downturns are experienced.
Highlights
The experience of the Nigerian state as it relates to the economic historical dispensation cannot be well digested without the era of currency devaluation and fuel subsidy saga
The fuel subsidy saga that started during the Obasanjo era, became more pronounced during the Yar’dua administration but turned into a lacuna of economic system during the Jonathan period resulting into a corruption if not nab in the bud will destroy the Nigeria economy
The Nigerian economy has been challenged by certain crisis of which the implementation of economic policies as currency devaluation and fuel subsidy removal have established controversial issues on the admissibility of these policies
Summary
The experience of the Nigerian state as it relates to the economic historical dispensation cannot be well digested without the era of currency devaluation and fuel subsidy saga. Over the years, these issues have confronted the nation which hit its height during the Babagida’s era (1985) when Structural Adjustment Programme (SAP) was floated and austerity measure, devaluation and inflation worsen the economy of the country. According to Adigwe (2013), he posits that currency devaluation and fuel subsidy removal are two key macro-economic policies, that have over time become thought provoking and controversial issues in the Nigerian economic system, and of which they have been and are still being used as principal tools in handling economic crisis
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